International Business Machines Corp. (IBM): A Good Buy For Long Term

Posted by Lynn Eisler January 5, 2015 0 Comment 1416 views


International Business Machines Corp. (NYSE:IBM) as emerged as the hot favorite stock for investors, soon after better prospective sale out offers are in process or in vogue. The technology parlance witnessed a merger deal between IBM and Global Foundries.

Paradigm Shift

However, as technology evolved as the order of this day and the barrier in technology, or a hindrance to development or inception of new innovation look inappropriate, International Business Machines Corp. (NYSE:IBM) witnessed a paradigm in the storage of data on servers; it is now no laptop or desktop or large servers anymore – it’s the big data that matters must!

However, the cause of dissent or concern has been accorded to the big data technology that put IBM in the back foot in terms of big data storage development. Net costs incurred in the process witnessed a rapid growth.

Revenues Fell

Overall sales witnessed a hit as well, as the traditional businesses pertaining to software services began to look forward to the cloud. Incidentally, International Business Machines Corp. (NYSE:IBM) witnessed a 4% YOY decrease in overall revenue lately, lowering expectations.

IBM And Long Term Prospects

Net dividend payable by IBM to its stake holders witnessed massive growth in collections. Estimates reveal that over the past half a decade, the overall dividend payable has only increased over the years. However, the net yield has only plummeted down almost inappropriately. On a short term basis, IBM has not proved much, not gained to higher extents. However, on the longer version, IBM holds promise and source of a large chunk of funds.

Installation And Setup

Meanwhile, a transaction occurred in the favor of Lenovo Middle East and Africa (MEA), after the successful completion of setting up of IBM x86 servers, as a means of a pact existent between Lenovo and IBM. Soon after January 1, 2015 the overall business operations are estimated to start off!

Net dividend payout, Lenovo-IBM collaboration in dealing with professional x86 servers and the big data challenges that comes with price but seeks technological advancement, make International Business Machines Corp. (NYSE:IBM) a palatable stock in terms of value possibly earned.



About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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